Answer Happy

Wild Wind Kite Co. is trying to decide which of two new projects they should take on. The NPV for Project A is $868.61. The initial cost (t=0) for Project B is $1,100 and it carries an 8% cost of capital. The positive cash flows for the next three years for Project B are $900 at year 1; $1,200 at year 2 and $200 at year 3. What is the NPV of Project B and which of the two projects should Wild Wind accept? O a. The NPV for Project B is $920.91;Wild Wind should accept Project A. O b. The NPV for Project B is $920.91;Wild Wind should accept Project B. O e The NPV for Project Bis 5928.19; Wild Wind should accept both projects. O d. The NPV for Project Bis $671.12; Wild Wind should accept Project A. Oe. The NPV for Project B is 50; Wild Wind should accept Project B.